The JV agreement will be used for the purpose of purchasing and/or maintaining a rental revenue property in, taking into consideration the following facts:
- The business of the joint venture is limited to the acquisition, development, rental and management of the properties.
- One of the joint venturers will hold title to the land as a bare trustee on behalf of all of the parties.
- The agreement does not create a partnership between the parties.
- Each joint venturer is entitled to receive revenues and will pay for the joint venture’s expenditures in proportion to that party’s respective interest.
- Each party indemnifies the other parties against third party claims.
- Funds required by the joint venture will be advanced equally by each of the joint venturers. If any party defaults in contributing funds, they will not be entitled to receive revenues until they have made their contribution.
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